Low interest credit cards

By updated on April 23, 2014

Are low interest credit cards right for you? If you're shopping for a low interest credit card, you should start by identifying how you use your credit now and how you want to use it in the future. If you pay off your balance in full each month, you may not need to search for the best low interest rate credit cards, since you don't pay any interest on your charges. If you do carry a balance, though, you should compare low interest credit card offers to find a card with a low rate.

Who can benefit most from low interest credit cards?

You'll find a low interest credit card most advantageous if you carry a balance on your card and if you are paying off credit card debt. Here's why: paying a lower interest rate credit card means you are paying less each month on the balance. If you know you are likely to carry a balance on future purchases, a low rate credit card will reduce the overall cost of everything you buy. If you are working to reduce your credit card debt, switching to a low interest card means that more of each payment goes toward eliminating the balance than to interest payments. Try a calculator to see the impact of a lower interest rate.

What should I look for in a low interest rate credit card offer?

There are several important facts to check when you decide you are ready to apply for a low interest credit card. First, check the interest rate, then check to see how long that rate will last. Some companies offer a short-term introductory rate followed by a rate that is higher than your current card. Unless you can pay the balance in full before the introductory rate ends, that offer won't be valuable. Consumers should also compare annual fees to make sure they are in line with other credit card offers.

How can I compare the best low rate cards for a balance transfer?

Some credit card companies offer credit cards with continuously low interest rates, say 10 or 11 percent APR. They also offer credit cards with a low introductory rate, sometimes as low as zero percent, to encourage you to transfer balances or make several purchases immediately. Compare these credit card offers based on your goals.

1.      Compare the promotional interest rate and see how long it lasts.

2.      If the interest rate will go up, check what the rate will be after the introductory period.

3.      Compare any balance transfer fees if you are considering transferring your debt from one card to another. Balance transfer fees are often as much as 3 percent to 5 percent of the total amount you owe, so make sure the fee you pay does not exceed the amount of money you will save in interest.

4.      Compare the annual fee.

You may want to use a credit card payoff calculator to estimate whether you can pay off your balance before any introductory period ends. Be sure to include the cost of any balance transfer fee in the total amount you will need to pay off.

If you intend to make a major purchase and pay if off over a long period of time, it may make more sense to apply for a credit card with a continuing low interest rate rather than a short-term low APR.

If you have decided a low APR credit card will meet your needs best, check out the low interest credit card offers on this page to see which one might be the best choice for you.

Are there any drawbacks to a low interest credit card?

A low interest credit card usually requires good credit, so consumers with fair to poor credit may not qualify for a lower interest rate. If you aren't sure where your credit stands, check your credit score before applying for a new credit card.

A low interest credit card is less valuable to you if you always pay your credit card bill in full, because you don't pay any interest at all if you pay your bill before the due date. If that's the case, you may be better off looking for a credit card that offers rewards points that you can use for things like airline frequent flier miles, hotel rooms, gas rebates or cash back. You can also look for a credit card with no annual fee or a fee that is waived during the first year.

credit card

See How Your Card Stacks Up

Could you be getting better rewards and rates with another card? Find out.

Can't find my card

PenFed Platinum Cash Rewards Visa® Card

Editor's Rating

  • Plus Card: 5% cash back on gas paid at the pump with a qualifying PenFed product.* No annual fee.
  • Standard Card: 3% cash back on gas purchases paid at the pump. $0 First Year, then $25 Annual Fee.
  • No foreign transaction fee
Apply Now Credit Needed Excellent

Purchase APR

9.99% Variable

Purchase Intro

APR: N/A

Balance Transfer Intro APR

4.99% Intro APR

Balance Transfer Intro Period

promotional balance transfer rate for 48 Months on Balance Transfers made between April 01, 2014 through June 30, 2014

Annual Fee

See terms 

Iberiabank Visa® Classic

Editor's Rating

  • Low variable rate of 7.25%, 10.25%, or 13.25% (Prime + 4.00%, Prime + 7.00%, or Prime + 10.00%) based on the creditworthiness. This APR will vary with the market based on the Prime Rate.Great Balance Transfer Card.
Apply Now Credit Needed Excellent

Purchase APR

7.25%, 10.25% or 13.25% Variable Purchase APR

Purchase Intro

APR: None

Balance Transfer Intro APR

1.99% After that your assigned purchase rate will apply.

Balance Transfer Intro Period

6 billing cycles

Annual Fee

None 

Mutual of Omaha Bank Platinum Rewards MasterCard®

Editor's Rating

  • 5000 Reward Points bonus on first purchase
  • 2X Rewards for First 60 days
  • $1 purchase = 1 reward point
Apply Now Credit Needed Excellent

Purchase APR

9.99%-20.99% Variable

Purchase Intro

APR: N/A

Balance Transfer Intro APR

9.99%-20.99% Variable

Balance Transfer Intro Period

N/A

Annual Fee

None 

Iberiabank Visa® Gold

Editor's Rating

  • Earn rewards on all qualifying purchases while enjoying one of the lowest rates in the country on purchases and balance transfers.
Apply Now Credit Needed Excellent

Purchase APR

9.25%, 12.25% or 15.25% Variable Purchase APR

Purchase Intro

APR: None

Balance Transfer Intro APR

1.99% After that your assigned purchase rate will apply.

Balance Transfer Intro Period

6 billing cycles

Annual Fee

None 

Iberiabank Visa® Platinum

Editor's Rating

  • No annual membership fee
  • Low variable Purchase APR of 9.25%, 12.25%, or 15.25% based on your creditworthiness. This APR will vary with the market based on the Prime Rate.
  • Low Introductory APR on balance transfers of 1.99% for your first 6 billing cycles. After that, your APR will be the same as your assigned purchase APR, based on your creditworthiness. Applies to balance transfers processed within three months of your account open date.
Apply Now Credit Needed Excellent

Purchase APR

9.25%, 12.25% or 15.25% Variable Purchase APR

Purchase Intro

APR: None

Balance Transfer Intro APR

1.99% After that your assigned purchase rate will apply.

Balance Transfer Intro Period

6 billing cycles

Annual Fee

None 

Iberiabank Visa® Select

Editor's Rating

  • 0% or 7.50% introductory APR on Purchases for 12 months from the account open date. This rate will be based on your creditworthiness. After that, your APR will be 7.50%, 9.50% or 11.50% based on your creditworthiness. This APR will vary with the market based on the Prime Rate.
Apply Now Credit Needed Excellent

Purchase APR

7.50%, 9.50%, or 11.50% Variable Purchase APR

Purchase Intro

APR: 0% or 7.50% After that your assigned purchase rate will apply.

Period: 12 months

Balance Transfer Intro APR

1.99% or 7.50% After that your assigned purchase rate will apply.

Balance Transfer Intro Period

12 billing cycles

Annual Fee

$35 

PenFed Promise Visa® Card

Editor's Rating

  • No annual fee
  • No foreign transaction fee
  • No balance transfer fee
Apply Now Credit Needed Excellent

Purchase APR

9.99% Variable

Purchase Intro

APR: 7.49%

Period: 36 months

Balance Transfer Intro APR

4.99% Intro APR

Balance Transfer Intro Period

promotional balance transfer rate for 48 Months on transfers made from April 01, 2014 through June 30, 2014

Annual Fee

$0 

PenFed Premium Travel Rewards American Express® Card

Editor's Rating

  • 20,000 bonus points when you spend $2,500 within the first 3 months of opening the Card account
  • Earn 5 points per dollar spent on airfare purchases
  • Earn 1 point per dollar spent on all other purchases
Apply Now Credit Needed Excellent

Purchase APR

9.99%* Variable

Purchase Intro

APR: N/A

Balance Transfer Intro APR

4.99% Intro APR

Balance Transfer Intro Period

promotional balance transfer rate for 48 Months on Balance Transfers made between April 01, 2014 through June 30, 2014

Annual Fee

$0 

These quotes are from credit card issuers which have paid for a link to their website. Offers are subject to change without notice and may not be the same for all consumers.